Dollar firms after US data, Yen heads to record weekly gains

US dollar stabilized today, Friday, after data showing the strength of the US economy reinforced the need for the Federal Reserve (the US central bank) to adhere to its path of significant tightening of monetary policy and increased expectations of raising interest rates at greater rates and for a longer period.

According to “Reuters”, the US currency gave up some of its gains in Asian trading after rising widely overnight, despite its swing against the Japanese yen, which continues to attract strong demand after a sudden adjustment in the Bank of Japan’s policies earlier in the week. ..

The pound rose 0.05 percent to $1.2043, after falling to a three-week low of $1.1993 overnight.

Data released on Thursday showed that the number of Americans filing new applications for unemployment benefits rose less-than-expected last week, indicating that the job market remains strong.

A second report released on Thursday also confirmed that the US economy recovered in the third quarter faster than expected, after contracting in the first half of the year.

Euro rose 0.06 percent to $ 1.0606, with it coming under widespread pressure recently due to weak growth in the euro area, the war in Ukraine and the hawkish path taken by the US central bank.

The dollar index, which measures the currency’s performance against a basket of six other currencies, reached 104.37.

Japanese yen declined by 0.2 percent to 132.67 per dollar on Friday, but it is heading for its third largest weekly gain this year, by more than three percent.